How do I contra payments between my 2 company and the same business partner?
Scenario
I have 2 Companies, ABC & DEF. Both share a Business Partner, XYZ.
Company DEF has a Supplier Invoice to XYZ for $5000. Company ABC has an invoice to XYZ for $1000.
I want to contra the $1000 XYZ owes ABC to the amount DEF owes XYZ.
Company DEF has a Supplier Invoice to XYZ for $5000. Company ABC has an invoice to XYZ for $1000.
I want to contra the $1000 XYZ owes ABC to the amount DEF owes XYZ.
Solution
We will use 2 Payment Vouchers to pay off the supplier invoice in DEF. The 1st PV will be done in the normal way. The 2nd PV will still import from the SI but the payee name will be ABC.
On ABC side we will do a normal receipt. The reasoning is DEF will still need to pay $5000 and ABC will still need to receive $1000. The PV to ABC from DEF will complete the $5000 DEF needs to pay.
The RV on ABC for PV from DEF will complete the $1000 ABC needs to receive.
On ABC side we will do a normal receipt. The reasoning is DEF will still need to pay $5000 and ABC will still need to receive $1000. The PV to ABC from DEF will complete the $5000 DEF needs to pay.
The RV on ABC for PV from DEF will complete the $1000 ABC needs to receive.
Steps
- Create the Payment Vouchers to XYZ from DEF.
- Click -> -> ->
- This Payment voucher will be $4000. We import the SI as per usual.
contra1
- Now we create the 2nd PV. But for this we change the Cheque Payee to ABC company.
contra 2
- Create the Receipt Voucher for ABC Company.
- Click -> -> ->
- We the invoice, and create up the voucher as follows.
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